What is a Credit Report?

A credit report is a report of a person’s financial history. Credit reports are used by companies that lend money to help them determine your ability to repay borrowed money, by landlords to see if you will be likely to pay your rent, and by some employers to see how responsible and financially stable you are.

Credit reports are created separately by three credit reporting agencies (CRAs): Equifax, Experian, and TransUnion. By regularly checking your credit reports from each agency, you can be sure that they are accurate and watch for identity theft. Identity theft is when someone uses your name, Social Security number, or other personal information to rent apartments or get utilities, cell phones, credit cards, or cable services in your name. Former foster youth are particularly at risk of identity theft because so many people have had access to their personal information.

NOTE: Not all credit reports are the same! You should compare the three different reports and check all for any issues.

You can get free copies of your credit reports from all three credit reporting agencies at: www.annualcreditreport.com or by calling (877) 322-8228. Be sure you go to this exact site. There are many other sites that will try to trick you and get you to pay and provide personal identification information. You can also send your request by mail to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. The downloadable form to request your credit reports by mail is here.

You will be asked to provide your name, address, Social Security number, and date of birth and may be asked other questions to verify your identity (like your previous mailing address if you moved within the last two years).

When you are between the ages of 14 and 17, CPS is required to run a credit report for you every year and review it. You have the right to review the report as well. If there are any problems with the information in the report, your caseworker is supposed to work with the state CPS office to fix the problems and discuss it with you. If you are 18 or older and in extended foster care, your caseworker is supposed to help you request your free credit reports and review them with you. If there are problems, your caseworker should tell you about how you can try to fix them, but it will be up to you to take the needed steps.

Once you leave foster care, you should continue to request your credit report from all three agencies every year. You can request each report at different times of the year so you will catch anything that comes up during the year.

Your credit report will be broken into a few main sections:

• Information about you, including your name, date of birth, Social Security number, employers, and spouse. It may list your history of jobs, home ownership, income, and previous addresses.
• Payment history includes a list of your accounts with different people you have made payments to (like landlords, utilities, and credit card companies), how much credit you have, and whether you are current on your payments. If you have an overdue account, it will be listed here.
• List of all creditors or potential employers who have asked for your credit report. If you do not recognize these, it could be a sign of identity theft.
• Public record information including bankruptcies, foreclosures, and tax liens.